CLA-2 RR:TC:TE 959676
Ms. Maureen Shoule
J.W. Hampton, Jr. & Co., Inc.
15 Park Row
New York, NY 10038
RE: Country of origin determination for backpacks and duffel
bags; Section 102.21(c)(4);
HQ 959417 of July 26, 1996; HQ 959669 of September 26, 1996
and HQ 959842 of October 29, 1996
Dear Ms. Shoule:
On July 25, 1996, we issued Headquarters Ruling Letter (HQ)
959427, in which we provided to you, on behalf of Access Bag
N'Pack, a classification and country of origin binding ruling
concerning backpacks and duffel bags. In a letter to this
office, dated August 21, 1996, on behalf of Access Bag N'Pack,
you provided us with additional information concerning the
country of origin issue. We have reviewed this information and
are providing you with a new binding ruling on the country of
origin of these products pursuant to 19 CFR 177.1 (d)(1).
FACTS:
The merchandise at issue is described as a backpack, style
#76200, and a duffel bag, style # 20341, both having an outer
surface of man-made fabric. A description of each item and their
manufacturing operations are as follows:
BACKPACK- STYLE #76200
The backpack is designed in the manner of a traditional
backpack. This design has two shoulder straps, a handle on the
top of the backpack, a zipper opening that goes halfway around
the backpack, a front pocket with a zipper opening and logo on
the front of the backpack.
TAIWAN
Materials are sourced (nylon, pvc sheeting, webbing, foam
padding, zippers, thread, buckles and hangtags)
Designs and dies are sourced
CHINA
Cutting the material into component parts
Sewing a logo to the front body panel
Sewing a zipper to the side panel and the front pocket
Sewing handle to top of the bag
Sewing backstraps and attaching them to the back panel
Sewing front pocket onto the front panel
TAIWAN
Connect front panel to side panel and back panel
Sew in country of origin label
Trim the inside of the bag
Turn the bag
Cut loose threads and clean bag
Package the bags into polybags/export cartons
DUFFEL BAG- STYLE # 20341
The duffel bag has a top zipper opening, two top handles,
two shoulder straps, a large front pocket with a zipper opening
and two large end panels, akin to large side compartments, that
have a top zipper opening and a side zipper opening.
TAIWAN
Materials are sourced (nylon, pvc sheeting, webbing, foam
padding, zippers, thread, buckles and hangtags)
Designs and dies are sourced
CHINA
Cutting the material into component parts
Stitch handles to main body panel
Sew body panel, lining and zipper together
Sew shoulder straps/piping
Stitch shoulder straps to end panels
Sew front pocket and side pockets and attach zippers
Attach side pockets onto end panels to form completed end
panels
TAIWAN
Connect the main body panel, end panels and front pocket
Attach the country of origin label
Stitch binding to cover inside seams
Trim the inside of the bag
Turn the bag
Cut loose threads and clean the bag
Package the bag into polybags/export cartons
ISSUE:
What is the country of origin of the subject bags?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act, codified
in 19 U.S.C. 3925, provides new rules of origin for textiles and
apparel entered, or withdrawn from warehouse, for consumption, on
and after July 1, 1996. On September 5, 1995, Customs published
Section 102.21, Customs Regulations, in the Federal Register,
implementing Section 334 (60 FR 46188). Thus, effective July 1,
1996, the country of origin of a textile or apparel product shall
be determined by sequential application of the general rules set
forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." As the subject merchandise is not wholly obtained or
produced in a single country, territory, or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) of this section, the country of origin of the good is the
single country, territory, or insular possession in which each
foreign material incorporated in
that good underwent an applicable change in tariff
classification, and/or met any other requirement, specified for
the good in paragraph (e) of this section."
Paragraph (e) states that "The following rules shall apply
for purposes of determining the country of origin of a textile or
apparel product under paragraph (c)(2) of this section:"
4202.92.15-4202.92.30 A change to subheading 4202.92.15
through 4202.92.30 from any other heading,
provided that the change is the result of
the good being wholly assembled in a single country, territory or insular possession.
Section 102.21(b)(6) defines wholly assembled as:
The term "wholly assembled" when used with reference to
a good means that all components, of which there must
be at least two, preexisted in essentially the same
condition as found in the finished good and were
combined to form the finished good in a single country,
territory, or insular possession. Minor attachments and
minor embellishments (for example,
appliques, beads, spangles, embroidery, buttons) not
appreciably affecting
the identity of the good, and minor subassemblies (for
example, collars, cuffs, plackets, pockets), will not
affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.
As stated in HQ 959427, the subject backpack and duffel bag
are classifiable under subheading 4202.92.3020, HTSUS, and
4202.92.3030, HTSUS, respectively. While the cut fabric pieces
and components imported from Taiwan into China are classifiable
in a different heading than heading 4202, HTSUS, the bags are not
wholly assembled in a single country, territory, or insular
possession. Therefore, as the terms of the tariff shift rule are
not met, this rule is inapplicable in this instance.
Paragraph (c)(3) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) or (2) of this section":
(i) If the good was knit to shape, the country of origin of
the good is the single country, territory, or insular
possession in which the good was knit; or
(ii) Except for goods of heading 5609, 5807, 5811, 6213,
6214, 6301 through 6306, and 6308, and subheadings
6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was
not knit to shape and the good was wholly assembled
in a single country, territory, or insular
possession, the country of origin of the good is the country,
territory, or insular possession in which the
good was wholly assembled.
As the subject articles are neither knit to shape nor wholly
assembled in a single country, territory, or insular possession,
Section 102.21(c)(3) is also inapplicable.
Section 102.21(c)(4) states that, "Where the country of
origin of a textile or apparel product cannot be determined under
paragraph (c) (1), (2) or (3) of this section, the country of
origin of the good is the single country, territory, or insular
possession in which the most important assembly or manufacturing
process occurred." In the case of the instant backpack, in
China, a logo is sewn to the front body panel, a zipper is sewn
to the side panel and the front pocket, a handle is sewn at the
top of the bag, the backstraps are attached to the back panel and
the front pocket is sewn to the front panel. In Taiwan, the
front panel, side panels and back panel are all sewn together.
When evaluating the assembly operations in both countries, it
appears that the assembly operations in Taiwan are the most
important in accordance with Section 102.21(c)(4). This
conclusion is in accord with HQ 959417, dated July 26, 1996, in
which Customs also dealt with a country of origin determination
for a backpack. In that case, the following operations were
performed in China: the attachment of an interior pocket and a
small exterior side pocket with zipper to the front panel and the
joining of the lining to the component
pieces. The front panel, back panel, suede components, shoulder
straps, gusset with zipper, and front pocket were assembled into
a finished backpack in Taiwan. When we evaluated the assembly
operations in both countries, pursuant to Section 102.21(c)(4),
we determined that the assembly operations in Taiwan were the
most important.
In the case of the duffel bag, the following operations
occur in China: the handles are stitched to the main body panel,
the body panel, lining and zipper are sewn together, the shoulder
straps are stitched to the end panels, the front and side pockets
are sewn and the side pockets are attached to form two completed
end panels. In Taiwan, the main body panel and end panels are
connected and a front pocket is sewn on. In evaluating the
assembly operations in both countries, it appears that the
assembly operations in China are the most important in accordance
with Section 102.21(c)(4). This is in accord with HQ 959669,
dated September 26, 1996, where Customs dealt with a country of
origin determination for a nylon sports bag featuring a main body
component and two gusset pockets (resembling side saddles), which
were located on either side of the main body of the bag. The
assembly operations in HQ 959669 are very similar to the
operations in the instant case. For example in HQ 959669, the
following operations took place in Taiwan: panels for the main
body of the bag were joined together, including the zipper, the
straps were sewn onto the back panel of the main body of the bag,
straps were sewn into gusset pocket panels and panels of gusset
pockets were sewn together, including zipper, to create side
saddles. In China, the main body of the bag and the gusset
pocket panels were sewn together. Pursuant to Section
102.21(c)(4), Customs determined that the country of origin was
Taiwan. We note that the only difference between HQ 959669 and
the instant case appears to be that in Taiwan a front pocket is
also attached when the main body panel and end panels are
connected. See also, HQ 959842, dated October 29, 1996, wherein
Customs dealt with country of origin determinations for a number
of styles of bags. In particular, we refer to style number AM94-9222, a large travel bag, that featured a front-gusseted zippered
pocket with a small flat mesh pocket, zippered pockets at both
ends of the bag, handles with a plastic adjuster, a shoulder
strap, five stands at the bottom of the bag, and a logo on the
fabric stripe at the front of the body of the bag. Pursuant to
Section 102.21(c)(4), Customs determined that the country of
origin was China where the following operations took place: the
sewing of the U-shaped zipper closure at the top of the bag, the
sewing of the double layer polypropylene handles and the
polypropylene fabric strip on to the front and back panel, the
sewing of the embossed logo to the front fabric strip, the sewing
of the flat mesh pocket to the front pocket, sewing of the zipper
onto the front pocket, sewing edges of side panels with zipper
and sewing of the inside lining to side panels to create the side
pockets.
HOLDING:
The country of origin for the backpack, style #76200, is
Taiwan.
The country of origin for the duffel bag, style #20341, is
China.
The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in section 19 C.F.R.
177.9(b)(1). This section states that a ruling letter is issued
on the assumption that all of the information furnished in the
ruling letter, either directly, by reference, or by implication,
is accurate and complete in every material respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
177.9(b)(1), the ruling will be subject to modification or
revocation. In the event there is a change in the facts
previously furnished, this may affect the determination of
country of origin. Accordingly, if there is any change in the
facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 C.F.R. 177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division